Pancake Swap, a leading decentralized exchange (DEX), is broadening its services by launching a new prediction market on the Arbitrum Layer 2 (L2) blockchain.
This development, aimed at leveraging the price of Ethereum (ETH), allows traders to compete against artificial intelligence in forecasting price movements. The initiative is expected to enhance Pancake Swap’s trading volumes and fees while introducing innovative tools for betting on ETH prices.
Multi-chain growth and incentives
To kickstart its prediction market, Pancake Swap will distribute 60,000 ARB tokens to stimulate user activity. The platform has secured a significant boost from Arbitrum, receiving a 450,000 ARB token grant to foster product development across various blockchains. This strategic partnership has enabled Pancake Swap to offer specialized pools and staking options, where users can earn ARB tokens as rewards.
PANCAKESWAP LAUNCHES OWN PREDICTIONS MARKET ON ARB – WHAT WE KNOW– DeFi-leader @PancakeSwap has just announced the official launch of its first ever predictions market, now live on Ethereum L2 @Arbitrum.– The predictions market is AI-powered in nature, featuring an AI-powered… https://t.co/PcL8N15EvK pic.twitter.com/phAo0hwgPL
— BSCN (@BSCNews) June 26, 2024
The DEX’s incentive programs, mainly through Arbitrum’s support, aim to augment liquidity and broaden its user base. Moreover, Pancake Swap continues to enhance its multi-chain presence. The DEX supports the native CAKE token in its veCAKE version across numerous staking pools.
The recent upgrade of veCAKE allows users to stake their tokens and earn returns from multiple yield farms simultaneously. Maintaining a solid presence on all Ethereum Virtual Machine (EVM)-compatible chains, Pancake Swap offers competitive fees of 0.1% and eliminates interface fees for active ETH traders. This aggressive promotional strategy and unique branded pools and projects foster small-scale retail participation, with opportunities starting at $5.
Trading volume and market position
Pancake Swap’s innovative incentive structures and dynamic market engagement have significantly boosted its trading metrics. The DEX now boasts a total value locked (TVL) of $1.49 billion and daily trades surpassing $593 million. This volume, partly driven by a highly developed quest model for incentivized liquidity, positions Pancake Swap as the third-largest DEX, trailing only Uniswap and Curve DEX but surpassing Solana’s Raydium in terms of activity.
The DEX’s recent performance shows a robust financial footprint, with revenues reaching $5.65 million in the past week and retaining $1.47 million in earnings. By contrast, Curve DEX retained around $200,000. Additionally, with an average fee of $1.25 per user, Pancake Swap generated $0.41 in revenues, underlining its effective strategy to enhance trading volumes, which recently hit $14.87 billion monthly.
Developer engagement and plans
Pancake Swap’s commitment to innovation is evident in its recent developer activity and product development surge. In the past month alone, there has been a notable increase in code commits, and the availability of core developers has been high. The DEX is set to participate in the ETH Global conference in Brussels with a dedicated $20,000 fund for developers, emphasizing its commitment to fostering new talent and innovation.
Pancake Swap has earmarked a $500,000 fund to attract developers capable of creating new products across its nine operational chains. Currently, the DEX operates Version 4 pools, showcasing its technological edge over competitors like Uniswap, which has yet to deploy its anticipated hook technology.
Don't forget – veCAKE just received a major upgrade! Now you can supercharge your yields in Arbitrum & Ethereum v2, v3 StableSwap, & Position Manager Farms with veCAKE. Check it out https://t.co/ULolojpyh1 More details here https://t.co/UqMMbzSdju https://t.co/qASYHM5C4i pic.twitter.com/5h0CQ4n0L6
— PancakeSwap v4 (@PancakeSwap) June 26, 2024
As decentralized exchanges continue to thrive, with nearly $1.2 trillion in trades and engagement from over 57 million unique wallets across all chains, Pancake Swap’s strategic initiatives and robust market presence underscore its significant role in the evolving cryptocurrency landscape.
The post Pancake Swap Expands to Arbitrum with New Prediction Market first appeared on Coinfea.